Neiman Marcus is Latest Victim of Security Breach

NEW YORK (AP) — Luxury merchant Neiman Marcus confirmed Saturday that thieves stole some of its customers’ payment card information and made unauthorized charges over the holiday season, becoming the second retailer in recent weeks to announce it had fallen victim to a cyber-security attack.

The hacking, coming weeks after Target Corp. revealed its own breach, underscores the increasing challenges that merchants have in thwarting security threats. Neiman Marcus didn’t say whether the breach was related to the massive data theft at Target, but some security experts believe they could be part of the same scam. Nevertheless, the recent security breaches at two major retailers threaten to scare shoppers who worry about the safety of their personal data.

Ginger Reeder, spokeswoman for Dallas-based Neiman Marcus Group Ltd., said in an email Saturday that the retailer had been notified in mid-December by its credit card processor about potentially unauthorized payment activity following customer purchases at stores. On Jan. 1, a forensics firm confirmed evidence that the upscale retailer was a victim of a criminal cyber-security intrusion and that some customers’ credit and debit cards were possibly compromised as a result.

Reeder wouldn’t estimate how many customers may be affected but said the merchant is notifying customers whose cards it has now determined were used fraudulently. Neiman Marcus, which operates more than 40 upscale stores and clearance stores, is working with the Secret Service on the breach, she said.

“We have begun to contain the intrusion and have taken significant steps to further enhance information security,” Reeder wrote.

Robert Siciliano, a security expert with McAfee, a computer security software maker, says it is possible Neiman Marcus doesn’t yet know the extent of the breach. He says he believes that the two thefts were likely committed by the same organized group, based on his experience and the fact that the incidents happened at around the same time.

“It’s a knee-jerk reaction that the security industry has right now,” he added.